One of the most attractive options for entrepreneurs is the retail industry. Whether they exist as brick-and-mortar storefronts or have an online presence, retail outlets allow suppliers to sell their goods directly to customers. While many types of retail stores last for decades and become institutions, other types struggle to stay afloat. The ability to determine which types of stores have the highest potential for profits is a critical task for those seeking to enter the retail arena.

E-Commerce and Online Auctions

Online merchants have much lower upkeep costs than those with brick-and-mortar shops, as they are only required to keep up their online presence. These reduced costs increase the potential profit margins for online merchants. Users of online auction sites often see high profit margins due to their low overhead. Dennis L. Prince, author of "How to Sell Anything on eBay... and Make a Fortune!" writes that sole proprietors can earn from $5,000 to $10,000 a month.

Green Toys

With a heightened consciousness on environmental issues, parents have turned to looking at the material that makes up their children's toys. The demand for so-called "green" toys has been outpacing the market for standard toys, despite a small market share. Green Toys Inc., the leading manufacturer of toys constructed solely from recycled materials, grew by 80 percent in sales each year from 2007 to 2011. The NPD Group, a premiere market research firm, estimated in 2011 that retail sales of green toys were outperforming the rest of the toy industry by 150 percent.

Organic Foods

With so many shoppers concerned about making the right choices about their health, retailers that specialize in organic foods enjoy high traffic and higher profits. Demand for organic snack foods to replace chips and cookies has grown due to new wellness programs in workplaces and in schools. Financial analysis firm Sageworks showed that sales growth rates for organic food stores rose by 1.53 in 2009 and by 5.92 percent in 2010.

Sporting Goods Rental

Another profitable industry is the rental of sporting goods and recreational equipment. Rental shops offer customers the chance to try out camping goods, ski equipment and water sports vehicles. Technological improvements have allowed for the development of lighter, stronger and cheaper materials. The industry grew by 10 percent in 2010, with an average company size of just over $447,000, and AnythingResearch, a customer research group, estimated that sporting goods rentals would reach $1 billion by 2013.